Business in a Global Environment
Learning Objectives
- Explain why nations and companies participate in international trade.
- Describe the concepts of absolute and comparative advantage.
- Explain how trade between nations is measured.
- Define importing and exporting.
- Explain how companies enter the international market through licensing agreements or franchises.
- Describe how companies reduce costs through contract manufacturing and outsourcing.
- Explain the purpose of international strategic alliances and joint ventures.
- Understand how US companies expand their businesses through foreign direct investments and international subsidiaries.
- Appreciate how cultural, economic, legal, and political differences between countries create challenges to successful business dealings.
- Describe the ways in which governments and international bodies promote and regulate global trade.
- Discuss the various initiatives designed to reduce international trade barriers and promote free trade.
